Instructions for Form 706 (2022) Checklist
Scope and purpose
This checklist applies to Form 706, the United States Estate (and Generation-Skipping Transfer)
Tax Return, for decedents who died during calendar year 2022. The return is used to report the gross estate, apply the estate tax exemption, and compute federal estate tax and generation-skipping transfer tax when required.
Form 706 may also be filed when no estate tax is due to elect portability of the deceased spousal unused exclusion. This filing relates only to estate and gift tax rules and does not apply to income tax credits or unrelated IRS forms.
Filing context and threshold rules
Filing requirements depend on the gross estate, adjusted taxable gifts, and applicable exclusions, rather than on asset value alone. Estates below the estate tax exclusion may still require filing when portability is elected or when generation-skipping transfer tax liability exists.
Executors should assess filing obligations early, especially where trust terminations, prior gift tax filings, or complex transfer taxes are involved. Clear documentation supports compliance and avoids delays during IRS review.
Ten-step preparation checklist
Step 1: Verify decedent identity and confirm filing purpose
Confirm the decedent’s full legal name, Social Security number, date of death, and United
States residency status for estate tax purposes. Verify whether the return is required due to filing requirements or filed solely to elect portability.
Determine whether prior Forms 709 exist and gather gift tax history needed for tax computations. Document the filing purpose clearly to support later estate tax due or portability determinations.
Step 2: Identify the executor and confirm signing authority
Determine who is legally appointed as executor or personal representative under the will or court order. Confirm the executor’s identifying information and retain a certified copy of the will or appointment documents.
Ensure the executor understands that only the executor may sign Form 706 under penalties of perjury. Powers of attorney allow representation but do not replace the required executor's signature.
Step 3: Collect and organize asset documentation
Assemble documentation supporting all decedent assets, organized by Form 706 schedules.
Records typically include bank and brokerage statements, real estate deeds, trust documents, insurance policies, and business ownership agreements.
Valuation generally relies on fair market value as of the date of death. Maintain organized files to support reported values and assist with future verification letters or refund reviews.
Step 4: Report real estate on Schedule A
Use Schedule A to report real estate interests owned by the decedent at death. Include property descriptions, ownership percentages, and valuation methods used to determine fair market value.
Avoid misclassifying jointly owned or transferred property that may belong on other schedules.
Proper schedule placement ensures accurate gross estate reporting and tax computations.
Step 5: Report securities and financial assets on Schedule B
Use Schedule B for stocks, bonds, and similar securities held at death. Report issuer details, quantities, date-of-death values, and supporting pricing documentation.
Accurate reporting of securities supports estate tax exclusion calculations and reduces the risk of IRS adjustment. Retain brokerage statements and valuation summaries with the return file.
Step 6: Life insurance reporting on Schedule D
List all life insurance policies on the decedent’s life on Schedule D, regardless of whether proceeds are includible. Determine inclusion based on ownership interests and incidents of ownership at death.
Maintain insurer documentation, including Form 712 when required. Correct reporting prevents errors in gross estate totals and generation-skipping transfer tax liability.
Step 7: Report cash and miscellaneous property; deduct debts separately
Report cash, notes, and similar assets on the appropriate cash or miscellaneous schedules.
Report assets at full fair market value without reducing amounts for debts or liens.
Deduct allowable debts, mortgages, and liens on the proper deduction schedules. Separating assets from deductions ensures accurate estate tax computations.
Step 8: Identify GST exposure and complete GST reporting
Determine whether transfers at death constitute direct skips to skip persons under generation-skipping transfer rules. Identify any generation-skipping transfer tax liability requiring reporting.
Complete GST-related schedules only when applicable, following instructions for Schedule R and any required attachments. Remember that portability does not transfer GST exemption.
Step 9: Assemble required schedules and supporting documents
Assemble Form 706 pages 1 through 4, required schedules, and continuation sheets in the order prescribed. Include required attachments such as the death certificate and supporting valuation documents.
Avoid attaching schedules tied to zero recapitulation items unless specifically required.
Organized assembly supports efficient processing by the Internal Revenue Service.
- Full IRS transcript retrieval (Wage & Income + Account)
- Professional tax form review
- Preparation & filing support
- Tax relief options if you owe the IRS
Step 10: Final review, sign, and file timely
Review the return for internal consistency, confirming the use of estate tax exemptions and the portability election entries. Verify executor authority documentation and confirm tax due calculations.
File Form 706 within nine months of the date of death, using an approved extension process if needed. Retain proof of filing and a complete PDF file copy for estate records.
Structural reminders for 2022 filings
Part 1 contains decedent and executor information, while Part 2 performs tax computations rather than listing assets. GST reporting relies on designated schedules rather than informal worksheets.
Always verify recent developments and official instructions before filing. Using IRS forms correctly reduces delays, prevents verification letters, and supports accurate estate and gift tax compliance.
If you’re missing tax documents or want to ensure the numbers you enter match IRS records, we can help.
